Neco Model Questions Vol1 2019 Financial Accounting Question 41
Practice objective / multiple choice question 41 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
A manufacturing firm produces two products, A and B. Total overhead for the period is \(\N120,000\). A fixed overhead of \(\N20,000\) is allocated to each product before variable allocation. The remaining variable overhead is allocated using two rates: a machine‑hour rate (MHR) and a labour‑hour rate (LHR). The firm used 800 machine hours for A and 600 for B, and 500 labour hours for A and 700 for B. The total labour cost is known to be 1.5 times the total machine cost. Direct material cost per unit of B is \(\N1,200\) and direct labour cost per unit of B is \(\N800\). The firm produced 150 units of B. Determine the cost per unit of product B (rounded to two decimal places).
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About This Question
This is Neco Model Questions Vol1 2019 Financial Accounting Question 41. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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